University of California Imposes Hiring Freeze Amid Budget Cuts

By Daniel March 24, 2025
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The University of California in the United States has announced a system-wide hiring freeze in response to significant budget constraints. President Michael V. Drake, M.D., addressed students and staff, citing looming federal funding cuts and expected reductions in the 2025–26 California state budget as key reasons for the decision.

The move comes amid growing concerns over the impact of recent policy changes and executive orders signed by former U.S. President Donald Trump, which could affect education funding, patient care, and critical research. The University of California, a leading public research institution, is now taking proactive measures to mitigate financial risks.

Drake emphasised that, while the university will continue working with federal and state officials to safeguard its priorities, immediate cost-saving measures are necessary. “First, we will implement a system-wide hiring freeze to help manage costs and conserve funds. I have directed every UC location to prepare financial strategies and workforce management plans to address potential shortfalls,” he stated.

Additional steps include delaying maintenance projects and limiting business travel. While each University of California campus will tailor its financial strategy based on individual circumstances, Drake assured that any action impacting staff or students would be taken with careful consideration.

Trump Freezes Federal Funding for the University of Pennsylvania

In a related development, the White House has frozen $175 million in federal funding for the University of Pennsylvania over its policies on transgender athletes. A Fox Business clip shared on X highlighted Trump’s commitment to ‘protect female athletes’ and enforce his executive order banning transgender women from competing in women’s sports.

In response, the University of Pennsylvania stated that it had not received official notification about the funding freeze. “We have always followed NCAA and Ivy League policies regarding student participation in athletics and remain in full compliance with all regulations,” the university said.

As the higher education landscape in the United States faces increasing financial and political challenges, institutions such as the University of California and the University of Pennsylvania must navigate uncertain times.

Source: SHIKSHA

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